All else equal: Buy the dollar.
The US dollar retraced last week on soft economic data but it's higher for the second day today. Why? In the absence of economic data, the market is back to doing what's worked for the past 8 months -- buying the dollar.
USD/CAD is especially impressive over the past few hours. It looks like the pair has put in a minor bottom for a bounce to 1.24. Yesterday, the combination of higher oil prices and a more-optimistic Carney Poloz didn't weigh on the pair yesterday and now it's up to a session high at 1.2297.
So long as stock market retain a bid, look for the strength to continue with nothing on the economic calendar today.
